Freelance Rate Calculator

Set an hourly rate around your income, expenses and billable time.

Enter your values

Desired income after the simplified tax reserve.

Equipment, software and other business costs.

Simplified percentage of gross revenue set aside.

Exclude holidays and time off.

Paid client time, excluding admin work.

Result

Suggested hourly rate$75.00
Annual revenue needed
$90,000.00
Annual billable hours
1,200
Tax reserve
$18,000.00

This planning rate covers your income goal and expenses after reserving the chosen share of gross revenue. It is a simplified budget, not a calculation of actual tax liability.

Calculated in your browser. Share links include the values you choose to share.

For general information and mathematical estimates. Results are not financial, investment or tax advice.

Formula

Hourly rate = (Income goal + Expenses) ÷ (1 − Tax reserve / 100) ÷ (Weeks × Billable hours)

Worked example

Income goal $60,000, expenses $12,000, reserve 20%, 40 weeks and 30 paid hours per week.

Target revenue is $90,000 across 1,200 hours: a $75.00 hourly rate.

How to use

  1. Estimate annual take-home income and business expenses.
  2. Choose a tax reserve and realistic paid weeks and hours.
  3. Calculate the baseline rate; adjust your quote for demand, risk and scope.

Frequently asked questions

Does this calculate my income tax?

No. The reserve is a flat percentage of gross revenue, without deductions or tax brackets. Your actual liability depends on your jurisdiction and circumstances.

Why use billable hours instead of all hours?

Only paid client hours directly generate revenue. Admin, marketing, learning and time off must be supported by the rate on billable work.